India’s engr sector in a tight spot after GSP withdrawal

3 June, 2019 12:00 AM printer

NEW DELHI: With the US withdrawing GSP benefits, the engineering sector in India seems to be in a tight spot as its exports to the western country under the programme account for about 44 per cent of the total annual duty benefits of $5.6 billion, an expert has said.

In 2018-19 fiscal, the engineering exports to the US stood at $331 billion, report agencies.

Of the total annual benefit of $5.6 billion India had been receiving from the US, the value of GSP benefit for engineering exports account for $2.5 billion, Rakesh Shah, the former chairman of Engineering Export Promotion Council of India (EEPC India), told PTI on Sunday.

While high-end engineering exporters will have to take a hit of 2-3 per cent margin, the low-value products, which constitute 40 per cent of the sectors' total value, may find it difficult to survive, if the matter is not sorted in the next two-four months, he maintained.